Blackberry 2007 Annual Report Download - page 30

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RESEARCH IN MOTION LIMITED
management’s discussion and analysis of financial
condition and results of operations continued
FOR THE THREE MONTHS AND FISCAL YEAR ENDED MARCH 3, 2007
Cash flows from operating activities For the Year Ended March 4, 2006 For the Year Ended February 26, 2005
As Previously
Reported Restatement Adjustments As Restated As Previously Reported Restatement Adjustments As Restated
Net income $ 382,078 $ (7,422) $ 374,656 $ 213,387 $ (7,775) $ 205,612
Items not requiring an outlay of cash:
Amortization 85,873 - 85,873 66,760 - 66,760
Deferred income taxes 77,938 (784) 77,154 (143,651) (991) (144,642)
Share-based payment 159 2,392 2,551 - 2,899 2,899
Other 507 - 507 (137) - (137)
Net changes in working capital items (396,464) 5,814 (390,650) 141,623 5,867 147,490
$ 150,091 $ - $ 150,091 $ 277,982 $ - $ 277,982
Special Note Regarding Forward-Looking Statements
This document contains forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform
Act of 1995 and applicable Canadian securities laws. The
words “expect”, “anticipate”, “estimate”, “may”, “will”,
“should”, “intend”, “believe”, “plan” and similar expressions
are intended to identify forward-looking statements.
Forward-looking statements are based on estimates and
assumptions made by RIM in light of its experience and
its perception of historical trends, current conditions and
expected future developments, as well as other factors that
RIM believes are appropriate in the circumstances. Many
factors could cause RIM’s actual results, performance or
achievements to differ materially from those expressed
or implied by the forward-looking statements, including,
without limitation, the following factors, which are discussed
in greater detail in the “Risk Factors” section of RIM’s Annual
Information Form, which is included in RIM’s Annual Report
on Form 40-F (copies of such filings may be obtained at www.
sedar.com and www.sec.gov):
• third-party claims for infringement of intellectual property
rights by RIM and the outcome of any litigation with
respect thereto;
• RIM’s ability to successfully obtain patent or other
proprietary or statutory protection for its technologies and
products;
• RIM’s ability to obtain rights to use software or
components supplied by third parties;
• risks related to RIM's internal review of its stock option
granting practices, the restatement of its previously
filed financial statements as a result of the review, and
regulatory investigations or litigation relating to those
matters;
• RIM’s ability to enhance current products and develop new
products;
• the efficient and uninterrupted operation of RIM’s network
operations center and the networks of its carrier partners;
• RIM’s ability to establish new, and to build on existing,
relationships with its network carrier partners and
distributors;
• RIM’s dependence on its carrier partners to grow its
BlackBerry subscriber account base;
• RIM’s dependence on a limited number of significant
customers;
• the occurrence or perception of a breach of RIM’s security
measures, or an inappropriate disclosure of confidential or
personal information;
• intense competition within RIM’s industry, including the
possibility that strategic transactions by RIM’s competitors
or carrier partners could weaken RIM’s competitive
position or that RIM may be required to reduce its prices
to compete effectively;
• the continued quality and reliability of RIM’s products;
• RIM’s reliance on its suppliers for functional components
and the risk that suppliers will not be able to supply
components on a timely basis or in sufficient quantities;
• effective management of growth and ongoing
development of RIM’s service and support operations;